$7.5 Billion in debt 88,000 employees Poor project management Few new products Lethargic matrix management Shaky morale Cut-throat competition Kodak was dying in 1993 – Why?
“Those that do not learn from history are doomed to repeat it” George Santayana
Became CEO of Kodak in 1993 Ph.D. in Applied Mathematics from Brown University 1966 Former CEO Motorola 1988-1993 Industry Rock Star Enter George M.C. Fisher – who is he?
Eliminate Debt Streamline Management Fast Track Products Increase Profitability Reinvent corporate culture Go slow, let change be absorbed gradually George had a plan to save Kodak – What was it?
$6 Million of debt was eliminated through sale of subsidiaries. The company was refocused on digital as the future of the company Expenses were slashed Management was held accountable Did it work? In some ways, yes, others no
Employee ranks were still bloated with analysts calling for cuts of 10-20% The dollar got stronger, which made competing against Fuji films overseas almost impossible. Fuji slashed the price of its film to thwart Kodak’s overseas bid. That sounds good, what didn’t work?
George Fisher stepped down as CEO in 1999 and Chairman in 2000 at age 58. He now sits on several boards but has never been CEO again. His Successor Daniel Carp was a 30 year Kodak veteran. (he lasted five years) George Perez is now CEO Ouch, what happened then?
Hard to say but certainly not in its present form. Kodak just announced job cuts of 4500 while announcing its first quarterly profit in years. The stock surged 18% to $6.08. The stock traded for $90 in 1997 Will Kodak survive?
Again hard to say, he could have cut more jobs quicker and refocused on digital products sooner In some cases the corporate culture is so ingrained that no CEO can make his message heard all the way down the org chart. In Closing, could George have done anything different to turn Kodak around?